Proposal to Market State-Run Retirement Plan Dies

A proposal that would have begun the process of pushing the state into Connecticut’s private sector retirement-planning business failed when the Senate chose not to take action on it in the last week of the session.

HB 5313 would have opened the state to significant administrative costs and fiscal risks associated with administering retirement plans for private employers and individuals. 

For example, state government would have been subject to all the complex federal rules, audits, and liabilities that private-sector retirement specialists must assume. And, if and when mistakes were made in administering the plans, the state would be financially liable.

HB 5313 also would have been an unnecessary and unwise intrusion of the state into competition with private sector retirement planning professionals.

Many small and large companies are currently providing highly competitive retirement plans to employers and their employees in Connecticut.

CBIA is encouraged that lawmakers chose not to move forward with this proposal.